The Financial and Consumer Affairs Authority of Saskatchewan (FCAA) has been warning the public recently of different types of online investment scams.
On March 17th, 2023, the FCAA warned of the online entity CA Trade Capital LLC.
This entity claimed to offer Saskatchewan residents an opportunity to invest in cryptocurrencies, forex, and contract for differences through an online website, but they aren't registered to trade or sell securities or derivatives in Saskatchewan.
The FCAA cautioned investors and consumers not to send money to companies that are not registered in Saskatchewan, as they may not be legitimate businesses.
Although Sean Purdue, Wealth Advisor with Credential Securities in Weyburn, explained that he hasn't run across any specific investor scams lately in the Weyburn area, he reminded that, "They're certainly always circulating and you always have to be vigilant."
Purdue explained that it's the old mantra, "If it's too good to be true, it probably is."
"If you're being promised high investment returns for little to no risk, that is very likely a scam, and that's where working with a licensed trusted advisor is really, really important."
If someone wanted to determine if an individual or company is registered, Purdue said that the best website is almost certainly the Canadian Securities Administrators website.
"You can search the name of the firm along with the name of the advisor, and ensure that both of them are registered."
Purdue added that scams are getting more sophisticated now, and to make sure you know who you're dealing with on the other end. "If you're unsure, likely just don't do it."